Gold prices in Pakistan extended their decline on Friday, tracking losses in the international market as weaker global bullion prices weighed on the local market.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold fell by Rs4,600 per tola to settle at Rs427,436.
The price of 10 grams of gold also moved lower, dropping Rs3,944 to Rs366,457.
The latest decline came a day after gold had already lost ground. On Thursday, the price of the precious metal had slipped by Rs1,800 per tola to close at Rs432,036.
In the international market, gold prices also remained under pressure. The global rate declined by $46 to $4,050 per ounce, including a premium of $20, reflecting the broader weakness seen across bullion markets.
Silver prices also followed the downward trend in Pakistan, with the price per tola falling by Rs61 to Rs6,309.
Gold prices in international market
Globally, spot gold edged lower on Friday after suffering a sharp 2 percent fall in the previous session. The metal came under pressure as Brent crude climbed back above $100 a barrel, fuelling concerns that higher energy prices could keep inflation elevated and strengthen the case for tighter monetary policy.
Spot gold was trading at $4,037.29 per ounce during early trade, while US gold futures slipped to $4,039.80. Even after the recent pullback, bullion remained on course to post a modest weekly gain.
Market analysts said gold has remained locked within a relatively narrow trading range for weeks, with strong buying interest emerging whenever prices approach the $4,000-per-ounce mark. However, they expect volatility to continue as investors weigh geopolitical tensions against expectations for global interest rates.
Investors are now looking ahead to next week’s US Federal Reserve policy meeting, where rates are widely expected to remain unchanged. However, markets continue to price in a strong possibility of a rate increase in September, a factor that could limit gold’s upside because higher interest rates reduce the appeal of non-yielding assets such as bullion.
Meanwhile, tensions in the Middle East and rising oil prices remain key factors influencing market sentiment, keeping traders cautious despite gold’s traditional role as a safe-haven asset.
